• General Beltings reported a 22% increase in volumes in its rubber division
• The firms' chemicals division experienced a decrease in total volumes of 52%
• The firm rebounded to profitability in 2022 by registering a $105 million net profit 

Harare - Zimbabwe's mining sector achieved a strong eight percent growth in 2022, with production increases across the sector. This has driven significant growth for General Beltings (GB), the country's sole manufacturer of conveyor belts. General Beltings reported a 22 percent increase in volumes in its rubber division, with 379 tonnes produced, due to the growth in Zimbabwe's mining sector.

Several large-scale mining projects are currently under construction and will be commissioned in 2023, with the aim of accelerating the growth of Zimbabwe's extractive sector. GB manufactures and distributes general-purpose and specialised conveyor beltings, rubber, and chemical products, including rubber-covered belting, PVC belting, solid-woven belting, and transmission belting.

Group Chairman, Mr Godfrey Nhemachena, reported that the division was buoyed by a consistent order book in his statement of financials for the year ended December 31, 2022. He expressed optimism for growth in 2023 due to the firm order book despite intermittent shortages of raw materials in two months of the year. Turnover increased significantly by 114 percent to $2,126 billion from the $995 million recorded in the prior year.

Several mining projects are set to be commissioned this year, with three of them in lithium mining and processing, expected to play a critical role in driving growth in the mining sector, which is one of the mainstays of Zimbabwe's economy. Other projects are in platinum, coal, gold, and other minerals, targeted to be commissioned within the coming years.

However, GB's chemicals division, Cernol Chemicals, experienced a decrease in total volumes of 52 percent to 564 tonnes, leading to an 11 percent decline in revenue to $884 million. Mr Nhemachena attributed the decline in volumes to depressed aggregate demand and the absence of exceptional Covid-19 business recorded in the prior year.

Despite this, GB aims to continue building on market confidence and product reliability to remain a preferred supplier in its pursuit of delivering commensurate value to its customers. Mr Nhemachena said that Cernol Chemicals would continue with initiatives for market recovery following the Covid-19 restrictions, on the back of product quality, innovation, and skills retention.

Overall, GB expects to deliver an improved performance in 2023, although the supply of power for industrial purposes remains a significant operational risk that threatens the growth momentum thus far. Despite stiff competition from imports, Mr Nhemachena said that the company held its own in terms of price, product quality, and turnaround times. As a result, gross profit increased by 96 percent to $1.6 billion when compared with the prior period's $846 million due to improved overhead recoveries. In turn the firm rebounded to profitability in 2022 by registering a $105 million net profit in the 2022 financial year from a loss position of $40 million prior year.

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